Item No. 7.4

Null

Council Report: C 30/2020

Subject: Results of the 2019 Tax Sale proceedings and the proposed 2020 Tax Sale process

Reference:

To: Mayor and Members of City Council

Recommendation:

THAT City Council RECEIVE the information regarding the 2019 Tax Sale and 2020 Tax Sale plan for information.

Executive Summary:

N/A

Background:

The Municipal Tax Sale Process

In 2009 and as updated in 2011, City Council was advised of the need for a more proactive approach to property tax collection. At that time, if left unattended, the outstanding arrears of $48 million were projected to exceed $50 million in relatively short order. Through use of the Guiding Principles (see appendix A) and inclusive of tax sale proceedings and the improving economy, the outstanding arrears stands at $32 million as at December 31, 2019. This represents approximately 7.7% of the total 2019 municipal tax levy of $415 million (inclusive of Education taxes).

Pursuant to Part XI – Sale of Land for Tax Arrears under the Ontario Municipal Act, 2001, the City is given the power to dispose of property owned by taxpayers in order to collect the outstanding property taxes. The registration of a tax arrears certificate against a property is the first step that will eventually lead to a tax sale if all other collection measures fail. The City’s interest ranks above all other creditors which typically include mortgage holders and other credit or debt collection agents with the exception of the Federal or Provincial Crown liens. .